Strategic Change at Chrysler

5155 words 21 pages
Strategic Change:
The case study of Daimler Chrysler


Globalization results in rapid and constant business environmental changes. As a result, most organizations tend to be more transformational organization so as to be flexible to respond promptly to those changes. Strategic change is one of the effective solutions to this situation. This paper will discuss the nature of strategic change in the first part. The next section is an analysis of Daimler Chrysler case study; whether the strategic change by merger bring them sustainable competitive advantage.

Nature of strategic change
The causes of strategic change
To be effective transformation organization, a company needs to be ready for incessant change of outside
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Additionally, development and concentration on belief among employees in organization help create the effective performance of company. Appelbaum et al. (1998) support that the largest obstacle of strategic change is not coping with technology or work process, but it is coping with people. In the other words, changing people system is the most difficult part of strategic change process. Hence, individual aspect is needed to be more concerned in the process of implementation. Kenny (2006) state that leader plays important role in this change and should be transformational leadership (Zeffane, 1996). Furthermore, leader is responsible to share organisation's vision clearly to subordinates. For example, manager should be able to communicate the crisis situation to his or her subordinates so as to decrease the resistance to change (Appelbaum et al., 1998). Moreover, involvement in strategic change process develops motivation among staff and leads them to have commitment in this change. Ultimately, the participation would encourage organization to the success. For instant, when employees’ vision is included in strategic change plan, these employees would feel the responsibility to follow their visions spontaneously (Landrum and Gardner, 2005).

Furthermore, learning is essential in every stage of strategic change in transformational organization, especially during emergent change period, because knowledge could help employee gain more


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